9th Circuit: State Law Contract Claims Not Barred By Federal Securities Law

PASADENA, Calif. - A group of putative class representatives' claims for bad faith and breach of contract related to their life insurance provider are not barred by the Securities Litigation and Uniform Standards Act (SLUSA) because they "did not rest on misrepresentation or fraudulent omissions," a Ninth Circuit U.S. Court of Appeals panel held Jan. 2, reversing in part a lower court's dismissal ruling (Freeman Investments, L.P., et al. v. Pacific Life Insurance Co., No. 09-55513, 9th Cir.; 2013 U.S. App. LEXIS 23).